AMD to take $50 million restructuring charge

Chip maker AMD announced yesterday that it will record restructuring costs of about $50 million in the first quarter. AMD said further costs reduction actions will result in unspecified additional charges during the remainder of fiscal 2009 and beyond. The company aims to complete its restructuring plan in Q4 2009.

Of the $50 million, about $23 million is related to severance costs and expenses for continuing some employee benefits, the company said. Roughly $13 million is related to contract or program termination costs.

AMD said further cost reduction actions will result in additional charges during the remainder of fiscal 2009 and beyond, which it said it can't estimate at this time, related to facility consolidations or closures.